Whelan found that the relatively short notice of his termination implied to the community at large that he had been dismissed for misconduct.

Consequently, he sued for wrongful dismissal, and also claimed $200,000 in damages for distress for the way his employment was suddenly terminated.

The court found the manner of Whelan's termination "was such as to cause the plaintiff undue mental distress, anxiety, humiliation, loss of dignity and injury to his feelings".

On this, Gallen J said "Addis v Gramophone Co Ltd is no more than an illustration of a principle that in commercial contracts such damages are inappropriate as not being enforceable".

Footnote: Section 123(c)(i) of the Employment Relationships Act 2000 now specifically allows the court to grant damages for humiliation and injury to feelings.